State Tax Rulings
Free state tax letter rulings and advisory opinions with plain-English summaries, full citations, and the original source on every page.
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Were prepaid software-license fees and monthly license-and-support charges subject to Florida sales tax?
Generally yes for the company's standard software and for software bundled with its hardware. The stated exception was company-customized software licensed without a hardware purchase; its license…
Did 32 rented monitors, test systems, respiratory devices, exercise machines, and traction products qualify as medicines?
No under the 1994 analysis. Appeals staff treated all 32 as devices not fully body-worn and recommended a reaudit, but later source notes flag changed rules for some items.
When were veterinary prescription refills treated as professional-service supplies rather than taxable retail drug sales?
Refills personally furnished by the veterinarian within one year of an examination were treated as part of professional services; later or other-person sales were retail.
Does the Texas manufacturing exemption apply to equipment, materials, and services purchased by a television broadcaster?
Partially. Because broadcasters produce programs for consideration, they qualify for the Section 151.318 manufacturing exemption on materials and equipment used directly in production (with a…
Are subscription sales of scientific/technical trade magazines exempt from Connecticut sales tax under the magazine-by-subscription exemption?
Yes. Subscription sales of the publisher's scientific and technological periodicals are exempt from Connecticut sales tax under Conn. Gen. Stat. § 12-412(6) as 'sales of magazines by subscription.'…
Is Texas sales tax due on motorized braces and orthotics sold or rented to patients on a doctor's prescription?
No. The motorized braces and orthotics described qualify as orthopedic appliances under Rule 3.284, and the sale, lease, or rental of a corrective lens, hearing aid, orthopedic appliance, prosthetic…
Did one Florida-resident co-trustee make half of an out-of-state testamentary trust's taxable value subject to Florida intangible tax?
Yes. The revised TAA concluded that the Florida-resident co-trustee was subject to Florida intangible personal property tax on 50% of the trust's taxable value. The trust had two trustees—one…
Is a Texas sale exempt from sales tax when an out-of-state customer hires a common carrier to pick up the items at the seller's place of business, rather than the seller arranging the shipment itself?
Yes, the sale is still exempt. Under Tex. Tax Code § 151.330(a)(2), a sale is exempt from Texas sales tax if the seller delivers the goods to a common carrier for shipment to an out-of-state…
Does a tire dealer owe sales tax on the sales price and does a warranty credit for a returned defective tire reduce the tax due, when tires are sold on open account and later adjusted under a manufacturer's warranty?
Selling and installing tires is treated as repairing a motor vehicle, and no tax is due on parts or labor furnished by the manufacturer under a manufacturer's warranty. When a customer returns a…
Did PLR 94-9 require an entertainment facility to withhold tax from payments to nonresident performers?
Yes, when a temporary nonresident licensee's payment exceeded or was expected to exceed $10,000 in a calendar year. The facility controlled ticket receipts and paid the settlement balance, so the…
Is the electricity used by a florist to power coolers or cooling rooms that keep cut flowers from opening too quickly exempt from Texas sales tax as used in processing?
No. The Comptroller ruled that refrigeration used to slow the natural opening (deterioration) of flowers is storage, not processing, so the electricity used to power florist coolers and cooling…
Is Texas sales tax due on the finder's fee a licensed private investigator charges for locating owners of unclaimed property held by a state agency?
Yes. The Comptroller ruled that a licensed private investigator's fee for locating claimants of unclaimed property is taxable as a security service, so sales tax must be added on top of the…
Does a maid or housekeeper have to charge Texas sales tax on cleaning services performed in a private home?
It depends on who is really in control. If you hold yourself out as a maid service (like "Happy Maids") and clean a home with only minimal direction on which rooms to clean, you are performing a…
Which charges for television-commercial scenery were taxable: setup, standby, strike, art direction, transportation, and actual installation?
Optional standby and strike labor were excluded. Filming-stage art direction was nontaxable, pre-filming design was taxable, and setup remained taxable until actual installation labor was proven.
Which setup, strike, standby, and art-direction charges were taxable when a builder supplied television-commercial sets?
Optional standby and strike work was nontaxable; art direction required allocation; set reassembly was taxable because title passed only after reassembly, except proven installation labor.
Does a company that only delivers, assembles, and installs greenhouses (bought separately from the manufacturer) have to collect Texas sales tax on its charges?
It depends on whether the greenhouse becomes part of the real property once installed. If the greenhouse becomes an improvement to realty, the installer's delivery/assembly/installation charges are…
Are knives used by meat processors exempt from Texas sales and use tax as manufacturing equipment?
No. Hand-operated knives used by meat processing members are "hand tools," and hand tools are specifically excluded from the Texas manufacturing exemption by Tex. Tax Code Sec. 151.318(c), so they…
Is Texas sales tax due on high-pressure washing services for motor vehicles, sidewalks, parking lots, and graffiti removal?
No tax on washing motor vehicles — power washing a motor vehicle is not taxable. But graffiti removal, sidewalk washing, and parking lot washing are taxable, either as restoration/maintenance of…
Were physical designs supplied to tee-shirt and belt-buckle manufacturers taxable even when the artist retained title or the customer scanned them?
Yes. The designs were taxable manufacturing aids regardless of title retention, customer handling, or scanning; only a qualifying contract-required out-of-state shipment could be exempt.
Were airport CAD models, plots, and architectural animation videotapes taxable products, and did the qualified-motion-picture exclusion apply?
The CAD files, plots, and video were property rather than incidental architectural-service documents, but the initial industrial animation transfer qualified; additional tape copies were taxable.
Is Texas sales tax due on the various oilfield lease-site services a contractor performs for farmers, ranchers, or oil companies — mowing, oil spill clean-up, site clean-off, saltwater disposal land work, dikes, road patching, new well locations, pit digging/filling, flow line repair, and truck pulling?
It depends on the specific job. Mowing/cutting at lease sites is not taxed (it's not a residential or commercial yard/lawn), but mowing a farmer's or rancher's own yard is taxed. Cleaning up oil…
Is Texas sales tax due on charges for faxing advertising materials, like coupons and flyers, to a list of recipients?
Yes. Charges for electronically transmitting fax messages are taxable as telecommunications services. Advertising services themselves are not subject to sales tax, but charges for sending…
Is Texas sales tax due on bulldozer and trackhoe work to clear land or dig ponds, and does it matter whether the bulldozer-and-operator charge is billed as one lump sum or broken out into separate labor and equipment charges?
It depends on the job and the billing method. Labor to clear land (including digging a new pond) as part of new construction is not taxable, but clearing underbrush for landscaping is taxable, and…
Is Texas sales tax due on billing and collection services that local exchange telephone companies provide to interexchange carriers, including the recording and rating components?
Yes, but only the recording and rating portion. Recording and rating are taxable data processing services because a computer is used to gather information and apply the carrier's rate schedule to…
Did a federally tax-free savings-bank reorganization create Florida corporate income tax?
No, if the reorganization and section 351 exchange produced zero federal taxable income and no Florida adjustment applied. Florida started from federal taxable income and required no…
Were ice cubes resold when an airline placed them in complimentary passenger drinks?
No. The airline consumed those ice cubes, making the caterer's sales taxable; ice used in drinks passengers bought was treated as resold.
Does the Texas motor fuels tax apply to kerosene bought in bulk for use in space heaters, even when it's delivered into storage marked for heating and cooking use only?
Yes. Kerosene is treated as diesel fuel for Texas motor fuels tax purposes, so bulk purchases (deliveries over five gallons) are taxable unless the buyer holds a diesel fuel tax permit or can give…
Were the nonprofit ballet organization's performance admissions exempt from Florida sales tax?
Yes. The Department found that the section 501(c)(3) organization met Florida's criteria for a nonprofit sponsoring organization, so admission charges to its performances were exempt.
Were architectural-signage designs and blueprints taxable when the design company was not licensed to practice architecture?
Yes. The physical sign designs were the contract's true object, so the full charge was taxable unless separately stated work met the preliminary-art requirements.
Did the bank's proposed checkline credit agreement trigger documentary stamp or intangible tax?
No. The submitted agreement lacked a direct written promise to pay a stated sum, so section 201.08 documentary stamp tax did not apply to the document or the contemplated draws. The Department also…
What remedies were available when a city paid tax on ambulances and then resold them before any use?
Depending on how tax was paid, the vendor or city could seek refund, or the city could take a tax-paid resale deduction if it was a retailer with enough tax liability.
Is Texas sales tax due on the food, beverages, and videotaping charges a focus-group coordinator bills to its clients?
Yes. Any separately stated charges for food and beverages and for video tapes (including taping services) are taxable to the customer. If the invoice instead shows only a single lump-sum charge…
How did the 1994 ruling tax a city's fiber bandwidth and network services?
Historically, Florida required the city to collect 7% sales tax and pay gross receipts tax on receipts from both bandwidth and network service. The city itself was exempt on network purchases and…
Was a biweekly California State University publication an exempt printed sales message or periodical?
It was not a printed sales message. It could be an exempt periodical if it met the continuity, content, frequency, and distribution conditions, but one sample issue was not enough to decide.
How did California tax completed movable interior wooden shutters furnished and installed in homes under lump-sum contracts?
The shutters were fixtures similar to Venetian blinds. The contractor was their retailer, owed tax on the stated or deemed fixture price, and needed a seller's permit.
Is a fee charged for a home grocery-shopping service -- where the shopper uses their own money to buy the customer's groceries, then delivers them and gets reimbursed plus a service fee -- subject to New York sales tax?
No. Home grocery shopping and delivery isn't one of the specific services New York taxes, so neither the service fee nor the reimbursement is subject to sales or use tax.
Can a social and athletic club buy lockers tax-free as a purchase for resale, since it charges members a fee to use them?
No. Locker-use fees are taxed as club dues (not as a rental or storage charge), and since the club-dues tax has no resale exception, the club must pay sales tax on the lockers it buys, regardless of…
Is a federal contractor exempt from Utah sales/use tax on parts and materials used to repair and maintain government-owned equipment, and does that exemption extend to its subcontractors?
Yes to both, with conditions. Charges for parts, materials, labor, and related services to repair tangible personal property are normally taxable, but Rule R865-19S-41 exempts sales made directly to…
Where did a vehicle sale occur when an out-of-state seller directed a third-party California warehouse to deliver the vehicle to a California customer?
At the California warehouse location, where the vehicle was located when conveyance occurred. The delivery agent was deemed the retailer, with destination-district use tax applying to the vehicle.
Does a company that sorts, processes, and mails customer mail (rather than manufacturing a product) qualify for Texas's manufacturing exemption on its equipment and supplies?
No. The Comptroller ruled that a mailing services company performing mail sorting, metering, and bar-code labeling is providing a nontaxable mail-handling service, not manufacturing, processing, or…
Can a taxpayer get a predominant use study and utility tax refund on a previous business location's natural gas/electric account after closing that account and moving to a new location?
No. The Comptroller will not allow a predominant use study on a closed utility account. Even though the taxpayer's engineer believed an accurate study could still be performed on the old location,…
Is Texas sales tax or motor vehicle tax due on motorcycle accessories, and does it matter whether the accessory is attached to the motorcycle or bought separately?
It depends on whether the accessory is attached at the time of purchase. An accessory attached to a street-legal motorcycle when it's bought (like a luggage rack) is taxed along with the motorcycle…
Can a landlord who buys gas and electricity, sub-meters it, and bills each tenant claim a manufacturing/processing exemption because most tenants are manufacturers who use the utilities predominantly in processing?
No. The Texas Comptroller ruled that a landlord who purchases gas and electricity for an industrial park and bills tenants for their sub-metered usage is making its own taxable commercial use of…
When a temporary worker's staffing contract is renewed until the worker becomes a 'leased employee,' can the agency stop charging Connecticut sales tax on the worker's wages and benefits?
Only going forward, once the worker actually qualifies as a 'leased employee.' A staffing agency's charges for separately stated compensation, fringe benefits, workers' compensation, and payroll…
Did a trust or its downstream hotel buyers inherit prior owners' sales tax after the trust foreclosed on the hotel property?
No, for the prior owners' liability. The foreclosure did not make the trust a successor, so its buyers had no duty to withhold for that old debt. But the trust's own taxable asset sale could create…
Is electricity used to cool natural gas, run compressors, and pump water (including salt water) at an underground natural gas storage facility exempt from Texas sales tax?
It depends on what the electricity is used for. Electricity used to run compressors that change gas pressure for transportation is taxable, not exempt as processing. Electricity used to transport…
Is tree care service taxable as a landscaping/real property service in Texas, even for trees in a commercial fruit or nut orchard?
Tree care services are generally taxable as landscaping (a real property service), but caring for trees in a commercial fruit or nut orchard operated by a person who raises the fruit or nuts for…
Were the Chapter 11 loan assignments, renewals, and mortgage changes subject to Florida stamp or intangible tax?
Mostly no. The assignments, qualifying renewal notes, and related renewal and mortgage documents remained exempt. New future advances were taxable, but after tax was paid on those advances, the…
What did the 1994 internal Comptroller memo say about which machinery, tools, and equipment used to repair or maintain a certificated/licensed carrier's aircraft qualify for the Section 151.328(d) sales tax exemption?
This is NOT a taxpayer-specific letter ruling — it's an internal September 22, 1994 audit memo from Lindey Osborne, Tax Administration, resolving a specific audited airline taxpayer's question about…
When a business relocates, which city's local sales tax rate applies to an existing fixed-term equipment lease — the old location's rate or the new one's?
The old location's rate continues to apply. For a fixed-term (e.g., 12-month or 3-year) operating lease or rental that was consummated from the original place of business, the Comptroller taxes it…
Is Texas sales tax due on fees charged in the mortgage brokering business, such as loan origination fees, brokerage fees, servicing fees, late charges, title policy charges, attorneys' fees, or real property surveying charges?
Mostly not taxable. The Comptroller advised that loan origination fees, equity origination fees, brokerage fees, late charges, prepayment fees, title policy charges, and attorneys' fees are not…
Did garlic cooking wine qualify as exempt food when the seller said it was non-drinkable and made only for cooking?
Only if it was legally rendered unfit for beverage use under Internal Revenue Code section 5362. The seller had not established that fact, so the letter was conditional.
Which South Carolina apportionment formula applied to an out-of-state affiliate earning trademark royalties tied to product sales?
The gross-receipts formula applied. South Carolina royalties belonged in the numerator and royalties from everywhere in the denominator; the manufacturing three-factor formula did not apply.
Was a printer's sale of specially ordered coupon books exempt when the books were routed through a carrier and mailing house for free household delivery?
Yes, if households received the books free and every delivery condition was met. The printer also had to retain delivery evidence and the required exemption certificate.
Was tax measured only by the discounted cash price when the retailer also received $5,000 for the customer's old product?
No. The $2,800 cash discount was excluded, but the old product's $5,000 value was additional consideration, producing taxable gross receipts of $30,200.
Are massage services provided by a New York-licensed massage therapist subject to New York City's local sales tax, and are they also subject to New York State sales tax?
New York City sales tax DOES apply to a licensed massage therapist's services, because massage isn't treated as a 'similar' medical service to the licensed professions the local tax exempts -- but…
Were paintings held for appreciation in a California home exempt as an art dealer's resale inventory?
No. The record showed investment use: the owner lacked seller filings and treated the paintings as depreciable capital assets held for appreciation.
Was computer hardware frequently demonstrated for resale when a software developer mainly used it to test, refine, and demonstrate its software?
No. Most customers already owned compatible hardware, so most demonstrations promoted the taxpayer's software rather than the hardware itself. The Board recommended use tax measured by the…
Is installing easily-relocatable, floor-to-ceiling moveable walls a tax-exempt capital improvement, and can the installer accept a Certificate of Capital Improvement on the sale?
No, moveable walls that can be relocated without damaging the building fail two of the three required capital-improvement tests, so their installation is a taxable service, not an exempt capital…
Are the services of recruiting temporary employees, drafting training-program manuscripts, and rewriting technical process sheets to a simpler reading level subject to New York sales tax?
No to all three. Recruiting/referral services aren't an enumerated taxable service, and writing manuscripts or editing material for a client -- whether training materials or technical documents --…
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